Capitalized Lease Obligations

12 Months Ended

Nov. 30, 2019

Leases [Abstract]

CAPITALIZED LEASE OBLIGATIONS

NOTE D – CAPITALIZED LEASE OBLIGATIONS

The Company is obligated under capitalized leases for telephone equipment. The Company leases equipment under two capital lease arrangements with NEC Financial Services. Pursuant to the leases, the lessor retains actual title to the leased property until the termination of the lease, at which time the equipment can be purchased for one dollar for each lease. The terms of the leases are 60 months with a combined monthly payment of $815, respectively. The assumed interest rates on the leases are 9.342%. The leases terminate in 2022.

Future minimum lease payments under these capitalized lease obligations as of November 30, 2019 are as follows:

2020	$	9,779
2021	$	9,779
2022	$	9,779
Total	$	29,337
Less: interest portion		4,453
Present value of net minimum lease payments	$	24,884
Less: current portion		7,782
Non-current portion	$	17,102

Capital lease obligations mature as follows:
Fiscal year ending December 31:
2020	$	7,782
2021	$	8,541
2022	$	8,561
Principal payments remaining	$	24,884